IBRA to sell more of its shares in banks

Tony Hotland, The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) plans to seek approval from the House of Representatives during this month to sell more of the government's remaining shares in a number of banks, according to agency chairman Syafruddin A. Temenggung.

Syafruddin said on Tuesday that he would discuss the divestment plan with House Commission IX, which oversees finance, banking and development planning.

"But we won't sell off all of our remaining shares. We need to keep sufficient shares in those banks in order to maintain voting rights," he said.

Some of the remaining shares to be sold included two percentage points of a 22.35 percent shareholding in Bank Danamon, two of 22.49 percent in Bank Internasional Indonesia, six of 26.15 percent in Bank Niaga and 1.5 of 6.5 percent in Bank Central Asia, said Syafruddin.

He explained that by retaining ownership in the banks, the government would retain a degree of influence to help ensure their stability.

IBRA, a government agency set up in early 1998, took over a number of troubled banks following the late-1990s financial crisis. The agency is mandated to restructure the banks and return them to financial health.

Syafruddin added that by owning shares in the publicly listed banks, the government would benefit if the value of the shares appreciated.

IBRA is slated for closure on Feb. 27. The Office of the State Minister of State Enterprises will set up a new entity to take over IBRA's remaining assets, including bank shares.

Syafruddin was speaking after a scheduled meeting with Commission IX was adjourned due to the absence of State Minister of State Enterprises Laksamana Sukardi.

The meeting, which was to discuss the divestment of Bank Permata and preparations for the closure of IBRA, should have been attended by Laksamana, along with Syafruddin and Minister of Finance Boediono.

Several members of the commission protested bitterly at Laksamana's five consecutive absences, saying that he was in "contempt of the legislature".

"This is harassment of the House. I really regret his absence because he prioritized a meeting with a (political) party rather than this meeting, which involves a wider public interest," said commission member Daniel Tanjung as he pounded the podium.

Laksamana is a key member of President Megawati Soekarnoputri's Indonesian Democratic Party of Struggle (PDI-P).

Many commission members, however, also failed to show up at the meeting. Fewer than 30 of the total 55 members of the commission were present.

Commission head and PDI-P legislator Emir Moeis said that Laksamana was attending a party meeting.

In a letter signed by the ministry's secretary-general, Bacelius Ruru, Laksamana expressed his regret for not being able to attend the meeting and asked to be represented by the IBRA chairman instead.

Emir said that the commission would send a letter to the government about the continual absence of Laksamana. However, he did not specify whether it would be addressed directly to Megawati.